The National Energy Policy Council (NEPC) approved the PDP 2018 plan, which resolved to reduce the proportion of electricity generation from coal to just 12%, down from the previous PDP 2015 plan's target of 20-25%. This change stems from the global trend towards greater interest in clean energy and natural gas.
Natural gas has gained interest as a cleaner fuel, leading to the discovery of numerous new gas sources worldwide, such as Qatar, Australia, America, and Russia. As a result, natural gas reserves are sufficient for several hundred more years, and a more open natural gas market has emerged, providing a wider range of options for gas procurement.
Thailand extensively uses natural gas and has a policy to promote itself as a regional LNG hub. This involves accelerating the construction of LNG receiving terminals to enhance gas security, even as gas production in the Gulf of Thailand begins to decline. Furthermore, the bidding for the Erawan-Bongkot gas fields by PTT Exploration and Production Public Company Limited (PTTEP) resulted in lower prices than in the past, allowing for the averaging down of imported LNG prices.
Given the security and manageable prices of natural gas, the PDP 2018 plan reduces the proportion of coal to 12% while keeping electricity tariffs from rising above current levels. This plan includes the construction of 13,156 MW of natural gas-fired combined cycle power plants and 1,740 MW of coal/lignite power plants.
The PDP 2018 plan also focuses on using natural gas as the primary fuel, alongside accelerating renewable energy development. It mandates the purchase of up to 10,000 MW of electricity from residential solar rooftops by the end of the plan and includes grid and legal framework improvements to support such electricity trading, while also planning for Thailand to become a regional electricity trading hub.
Overall, the PDP 2018 plan provides a clear answer for transitioning towards renewable energy, liberalizing solar rooftops, and using gas as the primary fuel to control prices and ensure security. It also aims to reduce coal-fired power plants to cut greenhouse gas emissions by 20-25% and reduce particulate matter from coal-fired power plants. This approach is considered to be in line with global trends and effectively addresses concerns regarding security, cost, and the environment.
